Vanguard, the mutual fund giant known for its rock bottom expenses and shareholder-friendly policies, has long been considered (fairly or unfairly) the king of indexing.  And why not?…it’s plastered across their home page!

It’s not a stretch to say this is the logical end for a firm that must be a strong believer in the Efficient Market Hypothesis (“EMH”).

Why then does Vanguard offer so many actively managed funds?  Are they speaking from both sides of their mouths?

Recently Vanguard’s Chief Investment Officer Gus Sauter authored an article explaining the firm’s stance premised upon a view of markets that are only “reasonably efficient.”  Mr. Sauter’s advice, therefore, is for investors to build portfolios around a “core” of index funds.

Want to read more?  Go here to see what Mr. Sauter had to say about indexing vs. active management and why Vanguard offers both types of products.